Japan's Oki sells semiconductor business to Rohm for USD853m

Thu May 29 2008, 09:51 AM

Japanese electronics firm Oki Electric has agreed to sell a 95% stake in its semiconductor business domestic rival Rohm. Under the agreement, Oki will spin off the division into a wholly-owned company called Oki Semiconductor, the majority of which will then be sold to Rohm. The deal was agreed for roughly USD853m (JPY90bn), with an adjusted price to be worked out on completion of the deal.

Deal Details

The move comes as Oki faces fierce competition in the chip-making market and has been looking to revamp its business model. Rohm MD Satoshi Sawamura says: "We will become more competitive as we expand our product line up and maximize our advanced production capabilities."

The deal is dependent on Oki board approval, which will be decided at its Jun shareholders meeting. The deal is due to be completed by Oct 1.